Sample Salary Administration Policy

The
Employer ABC Salary Administration Program includes increases based on the performance,
selection adjustments, and special adjustments.

Salary
Improvement Pool

Based
on the approval of Senior Leadership, each employee is eligible for an annual
salary increase.The salary increment guidelines
will be formulated during the budgeting process and disseminated by HR. The salary increase shall depend on the
employee’s performance, but will also consider the employee's other salary increases
within recent years, and the location of his/her current salary within the pay
range.

Employees
who not eligible for the performance increase shall receive a salary increase
equal to the salary structure adjustment only so that the employee's relative
salary location in the band is maintained.

Career
Movement

Career
movement occurs when an employee moves from one job title to another. To
provide appropriate incentive for career movement and skills development, the supervisor
shall establish the employee's new salary considering the following factors:

·The
candidate's qualifications, skills and related experience.

·Location
of the new salary in the new band.

·Salaries,
qualifications, skills, related experience, and performance levels of other
employees in the same title, department and/or pay band.

Generally,
the employee's new salary shall be within the new pay band's recruitment range.
In special circumstances, Human Resources may approve a salary above the
recruitment range.

Special
Adjustment Increases

Special
adjustment increases are pay increases based on position enhancement and/or
equity considerations.

Position
Enhancement

Position
enhancement occurs when a supervisor has authorized a significant and ongoing
increase in responsibilities that requires the employee to exercise greater
judgment, ingenuity, initiative and skill within his/her current job.

Supervisors,
in conjunction with Human Resources, may approve a pay increase of up to of base pay to recognize the enhancement.Increases must meet internal equity criteria
(i.e. based on similar incumbent and position qualifications, performance, and
pay levels).

Market
or Equity Adjustments

When
circumstances outside the salary administration program adversely affect an
employee's salary, and when these issues cannot be resolved by a performance or
promotional increase, a market adjustment may be authorized.

Market
adjustment increases may be necessary when external or internal considerations
affect an individual’s salary.For
example, the demand for a certain skill may far exceed supply, thereby
necessitating the need to increase the salaries of those employees with these
essential skills in order to retain them.

It
may be necessary to provide an equity adjustment increase to an employee or
group of employees to resolve a pay equity variance.

Documentation
justifying these increases must be on file with Human Resources and the
appropriate supervisor.In addition,
quarterly reports listing those individuals in receipt of these adjustments and
the amounts must be submitted to the Human Resources.

Special
Payments

There
are three types of special payments:

·Recognition
of extraordinary accomplishments.

·Recognition
of acting appointments.

·Location-based
pay differentials.

Special
payments do not affect base pay.

·Extraordinary
Accomplishment:

oWhen an employee has
performed well for a major period of time above the usual job expectations
under extraordinary circumstances, the supervisor and Human Resources may
authorize a special payment or temporary adjustment of up to of base pay.This payment does not affect the individual's base pay.This is intended to address infrequent,
unusual, and highly select cases when the usual performance increase does not
suffice. These extraordinary circumstances must have a definite commencement
and conclusion, and Human Resources must approve any exceptions. This does not
address changes in workload arising from usual cyclical fluctuations.
Documentation justifying these increases must be on file with Human Resources.

·Acting
Appointments:

oWhen an employee is
assigned to a higher position on a temporary basis of one to six months, a
temporary pay increase may be available.This adjustment does not affect the individual's base pay.The salary adjustment should equal, but not
exceed, the increase the employee would receive if promoted to that
position.Acting appointments of greater
than six months must be reviewed and/or approved by Human Resources. The amount
paid for all special payments shall be determined by internal equity
considerations.

·Location-Based
Pay Differential Adjustments:

oABC employees working
outside ABC locations shall be eligible for review of salary based on
cost-of-living differentials. The employee's salary shall first be established
equitably. Next, if the cost-of-living differential review indicates that the
employee's salary should be adjusted, the supervisor shall approve such
arrangement.The differential payment
shall be re-reviewed every six months.If the employee returns to City ABC-based employment, her/his salary
shall be reestablished equitably.